The key elements of effective Capital Investment Plan are: Capital Investment Planning typically include: • Consultation with stakeholders and definition of strategic goals; • Ongoing review of service levels and performance standards; • Planning for future infrastructure requirements and reviewing the adequacy of current infrastructure, based on growth projections and service levels; • Continually assessing […]
Investment planning
In the context of the public sector, capital investment is understood as investment in the acquisition or building of new assets (buildings, infrastructure, equipment), or as major repair and replacement of existing assets that have an economic life longer than one year and a value above a specified threshold Investment planning in the public sector […]
Streamlining Municipal Tax Administration
Municipal tax administration can be streamlined through various ways, including: Property tax administration The property tax is difficult to administer because of a shortage of skilled staff and mismanagement of records of land ownership and property transfers There is constraints in improving the fairness and revenue productivity of the property tax lie in all four […]
Rationalization of User Charges in urban water supply
Rationalization of user charges in urban water supply refers to the process of adjusting the charges levied on users for the provision of water supply services in a city or town, in a manner that is fair, reasonable and sustainable. This process involves assessing the costs incurred by the service provider, which includes the cost […]
Unit Area Method in Property Tax Calculation
Unit Area System or UAS: The Unit Area Value is based on the expected returns from the property depending on the location and usage of the property. Since the unit of calculation is based on per square foot per month (UNIT) and for a particular location, street, (AREA) and multiplied by a rate (VALUE). The Unit […]
Rationalization of User Charges
One of the important components of non tax revenue is user charge . User charges are still a recent phenomenon and there are not too many enabling provisions in the municipal laws. User charges act as signals of the scarcity value to consumers . User charges are useful to the extent that they help in […]
Tax increment financing (TIF)
Tax increment financing (TIF) is a flexible instrument for financing urban development, expansion or renewal to stimulate local economic development (LED). It aims at escrowing anticipated revenues from such projects, including tax increments due to their execution to service the debt incurred for financing. TIF is an innovative tool that uses future revenue streams to […]
Foreign Direct Investment
Funds from Foreign Direct Investment (FDI) have emerged as a major source of funds in infrastructural projects in India – for instance Japan’s (Japan Bank of International Cooperation) FDI support in developing the Delhi Mumbai Industrial Corridor (DMIC). Under FDI Policy 2013, almost all the sectors have been opened for 100 per cent FDI except […]
Funding by Bi‐lateral & Multi‐lateral agencies
Bilateral and multilateral agencies are international organizations that provide financial assistance to countries for various development projects and programs. These agencies have played a significant role in funding development projects in India. Bilateral agencies provide financial assistance directly to the recipient country, while multilateral agencies provide assistance through a group of donor countries or organizations. […]
Reforms in Municipal Finance
Reforms in municipal finance have been undertaken in India to improve the financial health and performance of urban local bodies. Some of the key reforms include: The 74th Constitutional Amendment Act of 1992, recognized the importance of local self governments in the process of service delivery in the urban sector. In August, 1996, UDPFI guidelines […]